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New JerseyA3877221st Legislature (2026-2027)HouseWALLET

Establishes certain State funding preferences for municipalities that enhance opportunities to develop housing.

Sponsored By: Craig J. Coughlin (Democratic), Raj Mukherji (Democratic), Verlina Reynolds-Jackson (Democratic), Shanique Speight (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 4 benefits, 1 costs, 0 mixed.

Housing-friendly towns unlock extra school aid

School districts must document local plan and development-rule changes that allow more housing to qualify for extra construction aid. For projects approved after the effective date and before expiration, the aid percentage can rise by up to 10%, with a 44% minimum. Regional district increases are limited by each qualifying town's share of resident student enrollment. In School Development Authority districts, qualifying capital maintenance projects can receive up to 10% more State support, capped at total project cost. Extra funding depends on new State or federal appropriations, or school construction bonds approved by voters after the effective date.

Towns can open more housing options

New Jersey towns can ask planning boards to review housing rules and report on ways to allow more homes. Options include accessory apartments, two- and three-unit homes, smaller lots, smaller homes, and fewer required parking spaces. Boards can also recommend manufactured or mobile homes, housing on commercial land, and denser housing near transit. Another option requires multi-unit homes on at least 10% of developable land. Towns do not have to adopt these changes, and any changes must follow the public process.

Housing-friendly towns gain transportation funding preference

The Transportation Commissioner must set a preference criterion for municipal projects funded through the Transportation Trust Fund. Towns qualify by changing their master plans and development rules to allow more housing. The Commissioner decides whether to apply the preference and must follow Department of Community Affairs criteria. No town or project is guaranteed funding.

Housing-friendly towns get State grant preference

Towns that change development rules to allow more housing get preference for covered competitive grants funded only with State money. Towns with substantially similar rules already in place can submit them for review. The Department of Community Affairs must publish a three-tier list, update it quarterly, and set preference rules and housing guidance. State agencies must use the list; covered programs include the Neighborhood Preservation Program. Exclusions include fair-share housing aid, shared services, consolidation, joint town applications, programs open to non-town applicants, and specified discretionary and property-tax-relief aid.

Housing funding advantages end after five years

The law generally takes effect on the first day of the ninth month after enactment. Agencies can take setup steps before then. The law's provisions expire five years after enactment, ending its housing-related funding preferences and school aid increases. Expiration does not require towns to repeal housing plans or zoning changes already adopted.

Sponsors & Cosponsors

Sponsors

  • Craig J. Coughlin

    Democratic • House

  • Raj Mukherji

    Democratic • Senate

  • Verlina Reynolds-Jackson

    Democratic • House

  • Shanique Speight

    Democratic • House

Cosponsors

  • Katie Brennan

    Democratic • House

  • Clinton Calabrese

    Democratic • House

  • Linda S. Carter

    Democratic • House

  • Shama A. Haider

    Democratic • House

  • Robert J. Karabinchak

    Democratic • House

  • Maureen Rowan

    Democratic • House

  • William B. Sampson IV

    Democratic • House

  • Sterley S. Stanley

    Democratic • House

  • Michael Venezia

    Democratic • House

Roll Call Votes

All Roll Calls

Yes: 137 • No: 54

House vote • 6/30/2026

CONCUR IN SA

Yes: 58 • No: 20

Senate vote • 6/30/2026

3RDG FINAL PASSAGE

Yes: 24 • No: 15

House vote • 3/23/2026

3RDG FINAL PASSAGE

Yes: 55 • No: 19

Actions Timeline

  1. Governor: APP

    8/27/2026Governor

  2. Approved by Governor — P.L.2026, c.78.

    8/27/2026Governor

  3. Passed Assembly, PBH — (58-20-0)

    6/30/2026House

  4. Received in Assembly, 2RAC

    6/30/2026House

  5. Passed Senate — (24-15)

    6/30/2026Senate

  6. Substituted for S2960 (1R)

    6/30/2026Senate

  7. REP/SCA, 2nd Reading in Senate

    6/28/2026Senate

  8. Referred to Senate Budget and Appropriations Committee

    6/28/2026Senate

  9. Received in Senate, SWR, 2nd Reading in Senate

    5/4/2026Senate

  10. Passed Assembly — (55-19-0)

    3/23/2026House

  11. Reported, 2nd Reading in Assembly

    2/12/2026House

  12. TRANS Assembly Oversight, Reform and Federal Relations Committee

    2/12/2026House

  13. Introduced, 1st Reading in Assembly, Referred to Assembly Housing Committee

    1/13/2026House

Bill Text

  • Senate Budget and Appropriations (6/28/26 1R)

    7/1/2026

    HTMLPDF

  • Senate Budget and Appropriations Substitute (6/28/26)

    6/29/2026

    HTMLPDF

  • Assembly Oversight, Reform and Federal Relations (2/12/26 TR)

    3/24/2026

    HTMLPDF

  • Assembly Oversight, Reform and Federal Relations Substitute (2/12/26)

    2/13/2026

    HTMLPDF

  • As Introduced

    2/12/2026

    HTMLPDF

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